Q1) The ordinary shares of Company A are expected to pay a dividend of $1.00 at the end of year 1 and market analysts expect that dividend to grow at 15% p.a. for the next three years before the growth rate drops to 5% p.a. for the foreseeable future. If the expected return on these shares is 15%, their price today is?

Q2) Company B has just issued a 'coupon growth bond' with the following terms. Each bond's face (maturity) value is $1,000 and the bonds will mature in 5 years time. Coupon will be paid on an annual basis at the end of each year. The first year's coupon will be $100 at the end of year 1, which will then grow at an annual rate of 10% until the bonds mature. If the bond's yield to maturity is 8% per annum, its price today should be?